10 March: Ontario has officially implemented a 25% surcharge on electricity exports to the United States as part of its response to U.S. President Donald Trump’s tariffs on Canadian and Mexican goods. Premier Doug Ford has warned that he is prepared to increase the surcharge or even halt energy exports entirely if the trade dispute continues.
According to the provincial government’s announcement on Monday, electricity generators selling power to the U.S. must now apply a $10 per megawatt-hour surcharge, a move expected to generate $300,000 to $400,000 in daily revenue and increase U.S. utility bills by approximately CAD $100 per month for some consumers in New York, Michigan, and Minnesota.
Ford, speaking at Queen’s Park, made it clear that Ontario will not back down until the U.S. completely removes its tariffs. “Pausing some tariffs and making last-minute exemptions won’t cut it,” Ford stated. “We need to end the chaos once and for all.”
Potential Expansion of the Surcharge
The Ontario government has implemented the surcharge through an urgent amendment to the Independent Electricity System Operator (IESO) rules, allowing the province to increase the surcharge without prior notice. When asked about potential increases, Ford said he would not hesitate to escalate countermeasures if the U.S. moves forward with additional tariffs on April 2.
“If he [Trump] continues to attack our province and country—taking jobs, paycheques, and food off families’ tables—I will do whatever it takes to maximize the pressure against him,” Ford declared.
Broader Impact of the Tax
Ontario supplies surplus electricity to 1.5 million homes and businesses across New York, Michigan, and Minnesota. Energy Minister Stephen Lecce highlighted that Ontario is a net exporter of electricity, sending approximately 12,000 megawatt hours to the U.S. annually.
Lecce warned that the surcharge’s impact could spread beyond these three states, as some of Ontario’s power is resold to other parts of the U.S. “If Michigan, for example, sells Ontario’s electricity to Ohio or another state, the surcharge will have a nationwide impact,” he said.
Push for Similar Measures Across Canada
Other Canadian provinces are considering similar retaliatory actions. British Columbia Premier David Eby recently announced that B.C. is working on legislation to impose export charges on energy shipments to the U.S..
Ford confirmed he is in talks with New Brunswick, Manitoba, Quebec, and British Columbia about maximizing their leverage in the ongoing trade war. He also hinted that Alberta should consider an export tax on oil shipments to the U.S., referencing Premier Danielle Smith’s comments about Alberta’s energy sector being a “trump card” in the trade dispute.
“If Alberta raised oil export taxes, it would instantly change the game. Imagine Americans seeing their gas prices jump by 90 cents to a dollar per gallon—they’d lose their minds,” Ford suggested, though he clarified that the decision remains with Premier Smith.
Ford Takes His Message to U.S. Media
In addition to implementing the surcharge, Ford has been actively raising awareness about the trade war’s potential consequences in the U.S. media. During an interview with CNN, he accused Trump of creating an unnecessary recession, calling it a “self-made Donald Trump recession.”
“He [Trump] promised to lower prices, reduce inflation, and create more jobs, but it has backfired,” Ford said. He urged the U.S. administration to renegotiate the USMCA trade deal to bring stability to both economies.
Ontario has confirmed that all revenue from the export tax will be used to support Ontario workers, families, and businesses impacted by the trade war.
